TRAVERSE CITY — Traverse City Light & Power, a city-owned utility, may be
purchased by Cherryland Electric Cooperative, according to The Leelanau
Enterprise.

TCL&P currently has a stake in a number of power-generating facilities and
owns the transmission and distribution lines. It is also responsible for billing
customers.

In a memo, Cherryland stated a number of benefits of purchasing TCL&P,
including the elimination of some duplicative distribution lines — there are a
couple areas where one company’s lines run across the street from the other’s —
increased customer base, and also a distribution of Cherryland profits to
Traverse City residents.

City officials believe a sale could lead to lower city property taxes,
perhaps by as much as half, according to The Enterprise.

"I’d like to cut taxes for downtown businesses, and my next door neighbor,
too," Mayor Michael Estes told The Enterprise.

BAY CITY — Bay City commissioners recently voted to solicit bids to operate
its two drawbridges, according to The Bay City Times. Commissioners attempted to
do so in 2007, but the action was vetoed by the mayor.

The move had been expected to save the city $193,000 in the first year alone,
according to The Times.

BIRMINGHAM — As part of a plan to eliminate a projected deficit of $3.2
million for the next school year, Birmingham Public Schools voted to contract
out the district’s custodial and transportation services, according to The
Oakland Press. The move is expected to save the district $2.7 million.

In order to balance its books, the district explored cutting 26 full-time
equivalent positions. With contracting, however, the district will add 15
positions, according to the Birmingham-Bloomfield Eagle.

The district selected Durham School Services to provide transportation
services and GCA Services Group to provide custodial services, as reported in
The Oakland Press. According to the Mackinac Center’s 2007 school privatization
survey, Birmingham is the first school district that has contracted with GCA.

The district already has experience in contracting out support services. Its
food service is currently being managed by Sodexho. If the contracts are signed,
Birmingham will join just five other school districts in the state that contract
out for food, custodial and transportation services.

PLAINFIELD TOWNSHIP — The Comstock Park board of education voted to hire a
private company to clean its Greenridge Elementary School, one of the district’s
six schools. The district awarded a contract to Grand Rapids Building Services.

After the retirement of a custodian in January, the district used GRBS on a
short-term basis to clean the building, according to The Press. However, the
district decided to have a formal bidding process to award a one-year contract
for the school.

Other districts around the state mix their custodial services between
contractors and district employees as well. Six other districts contract out
custodial services for a single building, according to the Mackinac Center’s
2007 school privatization survey.

By the district’s analysis, it would cost $50,823 for district employees to
clean the school for the next year. Savings offered by the five bidders ranged
between 6 percent and 32 percent, according to The Press. The district spent $8
million on support service activities in its 2006-2007 fiscal year, according to
its most recent financial report.

REED CITY — With a projected budget deficit of $750,000 for next year, Reed
City schools is investigating food and custodial service contracting.

The school board approved a request for proposals in February, and will
decide at the board’s May or June meeting, according to The Cadillac News.

Reference:"Reed City schools may privatize some jobs," Cadillac News, March 22, 2008

Holly schools look to contract out

HOLLY — Holly schools is facing a projected deficit of $225,000 for its next
fiscal year and the district is looking at food service contracting to fill the
gap, according to The Flint Journal. The move is expected to save $60,000.

It currently contracts with Chartwells to manage its food service program,
but it is looking to rebid its contract to include labor as well as management.
Since 2004, cafeteria employees who end their employment were replaced with
employees from Chartwells, according to an editorial from Superintendent Kent
Barnes in the Tri-County Times.

Food service programs are prohibited from contributing to a school’s general
fund — a district cannot use lunch money to pay for teachers — but it must
subsidize its food service programs if they run at a deficit. Holly’s food
services ran at a $58,823 deficit for the 2006-2007 fiscal year, according to
its financial reports.

The district also plans on contracting out its social work services, which
could save an additional $161,000, according to the editorial.

References:"Holly School District looks to privatize food service to address $225,000
deficit," The Flint Journal, April 14, 2008
"Guest Viewpoint," Tri-County Times, April 6, 2008.

Northville looks to contract out big three noninstructional services

NORTHVILLE — The Northville board of education is reviewing bids from
custodial and transportation companies. The district could save between $400,000
and $1 million in custodial services alone, according to The Detroit News. The
district is also looking at contracting for food services. The cost to provide
the three services is around $7 million, The News reported.

The district sent out its request for proposals in September and is currently
reviewing the bids, according to the Detroit Free Press.

PINCKNEY — Pinckney Community Schools is considering contracting for
custodial services as a way to help eliminate a $1.9 million deficit for the
next fiscal year, according to The Livingston Daily Press & Argus. Switching to
a private provider could provide savings up to $430,000, the Press & Argus
reported.

In a cost savings effort, the district has already closed Hamburg Elementary
School, saving $350,000 annually.

The district has told its custodial union that it must offer concessions by
June 30 or it will proceed with privatization, according to the Press & Argus.

NILES — The Niles Community Schools board of education voted to privatize its
transportation services to First Student. The district had been facing a deficit
of between $750,000 and $1 million, according to the Niles Daily Star.

First Student will also invest $1 million in the district’s bus fleet.

"It will help us reduce our operating costs and free up funds for use in core
educational activities," Scott Tyler, president of the Niles school board, told
the Daily Star.

SOUTHFIELD — Southfield schools decided to contract out its custodial and
transportation services and rejected last-minute concessions offered by its
service unions, according to the Detroit Free Press. The move is expected to
save the district $21.5 million over three years.

A consultant hired by the district recommended Durham School Services to
provide transportation and GCA Services Group to provide custodial services,
according to The Oakland Press.

For the 2006-2007 fiscal year, the district spent $14 million on operations
and maintenance and $7 million on transportation. It had a positive balance on
its food service fund, according to its financial reports.

Michigan Privatization Digest is a service of the
Michigan Privatization Report, a twice-yearly publication of the Mackinac Center for Public Policy with a circulation of more than 22,000. The Mackinac Center for Public Policy is an independent, non-profit research institute located in Midland, Michigan.